Inspiring change for people and the environment Rural Housing Conference Rural Fuel Poverty - Exploring the issues and solutions Bob Grant, Vice Chair, Scottish Rural Fuel Poverty Task Force

Health (physical and mental) Long term inequalities (“Shifting the Curve”) How we measure ourselves as a society Impacts of fuel poverty

Remit of the Task Force To develop a set of SMART actions which –Would make it significantly easier and more affordable for people living in rural and remote Scotland to keep their homes warm; and –Which can be fed into the further development of fuel poverty policy and energy efficiency programmes.

What’s different?

Household Costs A MINIMUM INCOME STANDARD FOR REMOTRURAL SCOTLAND Summary and key findings Households in rural Scotland need to have % higher budgets to sustain same living standards as rest of UK; Over 40% higher in remote rural areas Energy is more expensive

Electricity Oil LPG Solid Fuel Biomass Fuel Types

Electricity costs

North of Scotland additional costs

Electricity costs

72% have never switched tariff with an existing supplier, did not know it was possible, or did not know if they had done so Default tariffs average 10% - 13% higher for non standard tariffs across the UK Around 70% of customers are on standard variable tariffs with the “big six” Competition and Marketing Authority results

“Disengaged customers” 35% with incomes above £36K had switched 20% with incomes below £18K 32% of those with degrees had switched 18% with no qualifications Why not switch?

Apathy – reflects UK situation “It’s too difficult” Strong loyalty to the “hydro” “But they fix the line” No alternative supplier if on E10 or total Heating Total Control Tariff. Why not switch (locally)?

Tariff comparisons Tariffp/pkw/hr Standard10.00 SSE standard15.61 low ratehigh rate E THTC

Heating oil

Oil Prices

Oil prices have dropped by over 35% across the UK The £100 differential for rural areas has largely remained Oil prices

Are Area Based Schemes well targeted? Focus on Council tax banding A – C Small rural uplift from £7,500 to £9,000 Hard to treat rarely getting tackled Any evaluation of success? Insulation

Boiler replacement on like for like basis but No enabling measures: –Oil tanks excluded –Electrical wiring upgrade excluded –Chimney flues excluded Only option is for those most in need to take out a loan. Warmer Homes Scotland

Scottish Index of Multiple Deprivation (lacks rural sensitivity) RdSAP – Reduced Standard Assessment Procedures (susceptible to surveyor error on rural archetypes, and based on an average property in Sheffield) Lack of information sharing between professionals (data protection and budgets) National protocols

Possible solutions

The function of the Regulator - OFGEM –Intervene where there is market failure Equalisation of distribution charges Regulation of other fuel types – particularly oil and LPG Rural price comparison website to include all fuel types Possible solutions

Funding directed to the rural fuel poor more accurately: –Area Based Schemes to include appropriate funding for rural archetypes –Warmer Homes Scotland to include enabling measures –A rural Scottish ECO Evaluation of what has been done to date so lessons can be learned. Possible Solutions

An Energy carer approach from initial contact to successful outcome: –Assessment of need –Identify solutions –Arrange solutions –Monitor the effects Possible Solutions

“Our conclusions will be based on the principle that fairness and social justice are every households’ right – wherever in Scotland they happen to live.” Conclusion

References Welcome submissions Environment/Housing/warmhomes/fuelpoverty /fuel-poverty-task-force